in other cases, it's a very lightly used predict -- used product. consumers are getting something close to what they get in a retail store. >> reporter: a booming industry and this holiday season is a major reason. with retailers facing a crush of returned gifts, few want to risk their reputation reselling potentially damaged goods. that's where warehouses like this one come to the on rescue. many of the nation's biggest manufacturers and retailers unload excess inventory at one of four liquidity service warehouses across the country. >> returned holiday gifts are likely on a truck on the way to one of our warehouses. >> reporter: here the merchandise is unpacked, tested to make sure it's not damaged and in working order. it's all been resold in bulk to a public auction site. much of it selling at a big discount to businesses and entrepreneurs like hector ramos. >> i average 100% profit. i double my money. >> reporter: ramos is one of those who finds the warehouse deals too good to pass up. he makes a living buying these returned gifts and then rese